Great podcast on how gold acts as a hedge and compares the returns gold vs equities from data collected from 1971 onwards.
Bottom line is how ones portfolio should be allocated to benefit when stocks out perform gold and gold equities (current cycle)and vice versa (coming soon).
With negative real interest rates, fixed income returns are virtually non existent and how ones portfolio needs a higher ( than traditionally recommended) % of PM’s to hedge against a stock market that enters a downward cycle.
Historically when PM’s are in a bull cycle PM’s equities (miners) will greatly outperform the PM price.
Rick Rule explains this in the interview below.
I have never owned physical gold until a few days ago when I purchased 60 oz of bullion as I believe the PM price is going to head considerably higher in the next few years.
Thats one of the reasons I am bullish on BDC as the free cash that will come from a considerably higher gold price will reward the BDC faithful.
Great move last night in the gold price. The PM price bottom might finally be in (JP’s ESP post last night confirms this)
My investment thesis is to learn from successful people and always seek information to formulate ones own opinion.
Like the board and management of BDC, proven track record from PLS days and Robert Ryan management role at Paddington.
